Schlumberger buys $1.7bn stake in Russia’s biggest driller

Despite sanctions, Schlumberger Ltd, the world’s largest oilfield services company, will acquire a 45.65 percent stake in the Russian Eurasia Drilling Company for approximately $1.7 billion.

The value of each share of Eurasia Drilling,Russia’s biggest
driller,is
estimated at $22. The agreement gives Schlumberger an option to
buy the rest of the company’s shares three years after the deal
closes, Schlumberger said in astatementTuesday.

The deal also includes the London Stock Exchange delisting of a
Russian driller.

This comes at a time when the slump in oil prices is triggering
consolidation in the industry, as firms seek to cut costs.

Eurasia Drilling shares jumped almost 72 percent on the London
Stock Exchange following the news.

Schlumberger is working with a number of Russian oil companies
and the latest deal has put aside the concerns about what impact
the US sanctions could have on its work in Russia.

In September 2014 Schlumberger said it would withdraw American
and European personnel from Russia as the West imposed sanctions
against the country.

Schlumberger, based in Houston and Paris, is the world's largest
service company in the field of oil and gas. It provides a wide
range of services, from prospecting and exploration to supplying
specialized software. The company has more than 40 production and
research centers in Russia.